NH Investment & Securities announced on July 3 that it has successfully issued $600 million (approximately KRW 820 billion) in Eurobonds (Reg S). This is the first large-scale overseas fundraising by a domestic securities firm in about four years since 2021.
NH Investment & Securities issued $300 million in three-year bonds and $300 million in five-year bonds. By securing funds with a diverse maturity structure, the company has once again reaffirmed its status as a leading domestic securities firm.
The three-year Eurobond was issued at a rate of 4.676%, which is 90 basis points (1bp=0.01 percentage point) above the three-year U.S. Treasury yield. The five-year bond was issued at 4.873%, 100 basis points above the five-year U.S. Treasury yield. Based on the initial price guidance (IPG), the offering was highly successful, attracting orders totaling up to $7.1 billion (approximately KRW 9.6 trillion) from 182 institutional investors. Even after the final price guidance (FPG) was set, orders of about $6.3 billion (KRW 8.5 trillion) were maintained, representing demand 10.2 times the target amount. As a result, NH Investment & Securities was able to lower the rates on both bonds by 40 basis points from the initial guidance, issuing the bonds under favorable market conditions.
In particular, NH Investment & Securities achieved notable results in three areas: the largest rate tightening among domestic securities firms (indicating investor willingness to invest at lower rates), the narrowest spread since the Legoland incident, and the highest volume of investor orders among bank-affiliated securities firms. Industry experts expect that this successful issuance will have a positive impact on future overseas bond issuances by domestic securities companies.
Yoon Byungwoon, CEO of NH Investment & Securities, stated, "Stable foreign currency funding is extremely important as the foreign currency business in the securities industry continues to expand," adding, "We pursued this bond issuance to expand our global investor base and further enhance our foreign currency financing capabilities."
The funds raised through this issuance will be used for NH Investment & Securities' general operating capital and overseas business investments.
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